Business in the Global Economy

Today it is difficult to define economies in terms of national borders.

• True

• False

Absolute advantage compares one country’s ability to produce different goods or services to other countries’ ability to produce the same goods or services.

• True

• False

Without foreign trade, all of the items you buy would cost less, because they would not need to be shipped here from other lands.

• True

• False

A nation with a trade surplus is said to have a favorable trade position.

• True

• False

It is possible for the United States to have a trade surplus with one country and a trade deficit with another.

• True

• False

Some countries limit the amount of money their citizens can take out of the country when they travel.

• True

• False

For purposes of international trade, all nations of the world use the same currency.

• True

• False

When a country has a favorable balance of payments, the value of its currency is usually constant or rising.

• True

• False

Countries that devote most of their economies to agriculture usually have a higher level of economic development because they are able to provide more and better goods and services.

• True

• False

A joint venture is an agreement among two or more countries to remove duties and trade barriers on products traded among them.

• True

• False